Best Buy's Business Model

From our comments:

I have the Amazon app on my iphone and I've compared prices in the store many times. For books, you just have to put in the ISBN, and it's not that tough for most electronics.

Compared with Best Buy, Amazon saves TONS of money on anything small. Best Buy's business model seems to be competitive prices on TV's and computers, but then earning huge margins on Ethernet cables, HDMI cables, keyboards, converters, etc. There's also not much other choice for me for these items for brick-and-mortar, at least where I live.

Compared to books, Amazon doesn't save as much for newer titles if you get bestsellers. But they also save a ton of money on older titles

Which of course makes perfect sense.  A television is a considered purchase; people shop around.  Lots of people don't know to shop around for cables, and even those like me, who do, find ourselves running to a brick and mortar retailer because there's an emergency.  When the ethernet cable connecting my wireless to my cable modem has gone out, I don't really want to wait 48 hours for Amazon Prime to deliver (or even ship it overnight); I want my internet back up NOW.

Presented by

Megan McArdle is a columnist at Bloomberg View and a former senior editor at The Atlantic. Her new book is The Up Side of Down.

How to Cook Spaghetti Squash (and Why)

Cooking for yourself is one of the surest ways to eat well. Bestselling author Mark Bittman teaches James Hamblin the recipe that everyone is Googling.

Join the Discussion

After you comment, click Post. If you’re not already logged in you will be asked to log in or register.

blog comments powered by Disqus

Video

How to Cook Spaghetti Squash (and Why)

Cooking for yourself is one of the surest ways to eat well.

Video

Before Tinder, a Tree

Looking for your soulmate? Write a letter to the "Bridegroom's Oak" in Germany.

Video

The Health Benefits of Going Outside

People spend too much time indoors. One solution: ecotherapy.

Video

Where High Tech Meets the 1950s

Why did Green Bank, West Virginia, ban wireless signals? For science.

Video

Yes, Quidditch Is Real

How J.K. Rowling's magical sport spread from Hogwarts to college campuses

Video

Would You Live in a Treehouse?

A treehouse can be an ideal office space, vacation rental, and way of reconnecting with your youth.

More in Business

Just In